Obama is wrong, the US economy is ‘extraordinarily weak’ says former Fed chair Alan Greenspan

Posted on 27 February 2015 with no comments from readers

The US economy is ‘not strong’ says former Federal Reserve chair Alan Greespan contradicting the recent pronouncements by President Barack Obama. He spoke to Kelly Evans on CNBC ahead of today’s GDP number.

The most trusted stock by the investors comes from the Treasury and Treasury bonds, notes and bills find a place in the secure investment shelves of most of them. Why? Because, the government, that too, of the United States issues them and beating the economic stability of the Federal state is next to impossible. These three assets are almost in many features, but are independent and characteristic in terms of the tenure of maturity, rates of interest, payments, vulnerability to the stock market fluctuations and yields. You can purchase them either as individual assets or along with the Ethereum Code platforms and continuously build upon them.

The tenures usually fall between 1 year and 30 years, with only the Treasury bond coming for 30 years holding. This makes them less subjected to the volatility of the share market since long-term investments get the most pronounced impact rather than the short-term assets. For example, you are purchasing a Treasury bill for one year and a corporate share for 30 years. It is highly unlikely that the US government will rip apart in the one-year duration but it is beyond prediction that what will the situation after 30 years. Recently, the stock markets have been crashing frequently and also hitting record highs in the shortest time intervals. Hence, good omens are few based on the current trend.

If you want to include the market trends of a broader time frame since investments took back quickly may not serve all purposes, the T-bills with tenure of 10 years serve as the benchmark and are the most tracked asset with high security in the stock market.

Yields on the 10- and 30-year treasurys are falling is ‘an indication of how weak the overall global economy is’, he said, ‘effective demand is extraordinarily weak… The way I measure it, it’s probably tantamount to what we saw in the later stages of the Great Depression… it’s not anywhere near what the problems were back then but we haven’t seen anything like that since then.’

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Posted on 27 February 2015Categories: Banking & Finance, Bond Markets, Global Economics, Hedge Funds, Investment Gurus,Investment Management, Sovereign Wealth Funds, US Stocks, Video Channel